PNB plans foray into South Africa, Indonesia

Public sector lender Punjab National Bank (PNB) plans to enter South Africa and Indonesia to expand its international business operations and raise its share in the total business to 7 per cent in next three years.

The outstanding international business was $3 billion at end of December 2009, which amounts to about 3 per cent of total business (deposits and advances).

The bank’s intention to enter Africa and Indonesia was to benefit from business opportunities due to growth in bilateral trade. The Delhi-based bank would choose routes (branch, subsidiary or acquisition) based on regulatory norms and business prospects, its Chief General Manager Ranjan Dhawan said on the sidelines of a function to commence merchant acquisition business.

 

The bank is in the process of establishing a subsidiary in Canada. It operations are expected to start by end of 2010. Initially, it would invest $25 million as regulatory capital for the Canadian subsidiary.

Meanwhile, the bank said it would scale up its automated teller machine (ATM) base to 8,000 units from the present 3,075 units by 2013. It may incur an expenditure of Rs 400 crore to ramp up its ATM network.

On point of sale terminals, its Chairman and Managing Director KR Kamath said the bank would first cover 10 cities and then gradually extend it to other business centres.